Transfer Pricing

Imad A. Moosa

Chapter 8 in Foreign Direct Investment, 2002, pp 221-242 from Palgrave Macmillan

Abstract: Abstract Transfer pricing, also known as internal pricing or intracorporate transfer pricing, refers to the pricing of goods and services that are bought and sold (transferred) between members of a corporate family. In other words, transfer pricing is the process of determining the prices of (intermediate and finished) goods and services sold by the parent MNC to a subsidiary, by the subsidiary to the parent MNC, and by one subsidiary to another. There are several reasons why MNCs set arbitrary high or low prices on cross-border transfers, making this issue very sensitive politically. This practice often becomes a source of hostility between MNCs and host governments, not least because it may be used for the purpose of tax evasion.

Keywords: Foreign Direct Investment; Foreign Currency; Transfer Price; Domestic Currency; Foreign Subsidiary (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-0749-3_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781403907493

DOI: 10.1057/9781403907493_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().